I’ve been recently interested in crypto currencies and I was looking for a fundamental filter. There’s nearly nothing out there on fundamental cryptos value. Futures are trading at CME and etfs will come soon too. So there must be something good on cryptos for the future. I read a couple of papers on Metcalfe’s Law and I decided to create a map with the Metcalfe value for each crypto currency that shows data needed to implement the formula. Above there’s Average Transactions during last 24 hours Metcalfe potential % return chart and below there’s Active Addresses during last 24 hours Metcalfe potential % return chart .
This is not a system or a strategy but just something that tells us where the north is. I compare the Metcalfe values on the table below to each crypto coin market cap to understand if fundamentals are calling for an upside potential move or a downside potential move. Anyway, it can take days, weeks or months or even years to develop. I use the data below to create the charts above:
They are updated every 5 minutes.
I kept things simple, without regressions or optimization of parameters. I used only the pure:
Metcalfe’s Law = n*(n-1)/2 = web’s value
where n = Active Addresses last 24h or n = Average Transactions last 24h
and web’s value is Crypto Currency Market Cap.
Below there’s the COMBO version of the 2 charts above:
Cryptos that aren’t showing both Active Addresses and Average Transactions data are not displayed on this combo chart.
Finally I wanted to replicate McAfee Bitcoin Price prediction data:
QUANTFOR 